Joseph Bonney, Senior Editor | May 11, 2012 9:44AM EDT
Hanjin Shipping’s container shipping unit posted a first quarter operating loss of 237.8 billion won ($208 million) as weak rates offset a 7.4 percent increase in container volume.
The South Korean carrier’s operating loss on containers widened from $27 million in the first quarter of 2011. Container revenue slipped 0.3 percent to $1.570 billion. Container volume rose to 1,014,838 twenty-foot-equivalent units.
A $9 million profit from the group’s smaller bulk shipping unit offset some of the container losses but Hanjin finished with a group-wide operating loss of $190 million, compared with a loss of $15 million a year earlier.
The company’s group-wide net loss was $295 million, compared with a net loss of $282 million a year earlier.
Hanjin said rates and volumes have risen since March. The carrier said it is counting on higher rates, including an early peak season surcharge, and new routes and ships to contribute to a “positive turnaround” this year.
Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.